HR 6262 IHCommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

2d SessionCommentsClose CommentsPermalink

H. R. 6262CommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to provide tax relief to middle-class families, small businesses, and family farms.CommentsClose CommentsPermalink

IN THE HOUSE OF REPRESENTATIVESCommentsClose CommentsPermalink

August 1, 2012CommentsClose CommentsPermalink

Mr. LOEBSACK (for himself, Mr. BOSWELL, and Mr. GARAMENDI) introduced the following bill; which was referred to the Committee on Ways and MeansCommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to provide tax relief to middle-class families, small businesses, and family farms.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE; ETC.

(a) Short Title- This Act may be cited as the ‘Middle Class and Small Business Tax Relief Act of 2012’.CommentsClose CommentsPermalink





(b) Amendment of 1986 Code- Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.CommentsClose CommentsPermalink





(c) Table of Contents- The table of contents of this Act is as follows:CommentsClose CommentsPermalink





Sec. 1. Short title; etc.CommentsClose CommentsPermalink





Sec. 2. Permanent extension of certain 2001 tax relief for middle-class families, small businesses, and family farms.CommentsClose CommentsPermalink





Sec. 3. Permanent extension of 2003 tax relief for middle-class families, small businesses, and family farms.CommentsClose CommentsPermalink





Sec. 4. Temporary extension of 2009 tax relief.CommentsClose CommentsPermalink





Sec. 5. Temporary extension of estate tax relief.CommentsClose CommentsPermalink





Sec. 6. Temporary extension of increased alternative minimum tax exemption amount.CommentsClose CommentsPermalink





Sec. 7. Temporary extension of alternative minimum tax relief for nonrefundable personal credits.CommentsClose CommentsPermalink

SEC. 2. PERMANENT EXTENSION OF CERTAIN 2001 TAX RELIEF FOR MIDDLE-CLASS FAMILIES, SMALL BUSINESSES, AND FAMILY FARMS.

(a) In General- Section 901 of the Economic Growth and Tax Relief Reconciliation Act of 2001 is amended--CommentsClose CommentsPermalink





(1) by striking ‘this Act shall not apply--’ and all that follows through ‘in the case of title V,’ in subsection (a) and inserting ‘title V shall not apply’, andCommentsClose CommentsPermalink





(2) by striking ‘years,’ in subsection (b).CommentsClose CommentsPermalink





(b) Application to Certain High-Income Taxpayers-CommentsClose CommentsPermalink





(1) INCOME TAX RATES-CommentsClose CommentsPermalink





(A) TREATMENT OF 25- AND 28-PERCENT RATE BRACKETS- Paragraph (2) of section 1(i) is amended to read as follows:CommentsClose CommentsPermalink





‘(2) 25- AND 28-PERCENT RATE BRACKETS- The tables under subsections (a), (b), (c), (d), and (e) shall be applied--CommentsClose CommentsPermalink





‘(A) by substituting ‘25%’ for ‘28%’ each place it appears (before the application of subparagraph (B)), andCommentsClose CommentsPermalink





‘(B) by substituting ‘28%’ for ‘31%’ each place it appears.’.CommentsClose CommentsPermalink





(B) 33- AND 35-PERCENT RATE BRACKETS- Subsection (i) of section 1 is amended by redesignating paragraph (3) as paragraph (6) and by inserting after paragraph (2) the following new paragraph:CommentsClose CommentsPermalink





‘(3) APPLICABLE AMOUNTS IN THE FOURTH RATE BRACKET-CommentsClose CommentsPermalink





‘(A) IN GENERAL- In the case of a taxpayer whose applicable amount for the taxable year is in the fourth rate bracket--CommentsClose CommentsPermalink





‘(i) the rate of tax under subsections (a), (b), (c), and (d) on a taxpayer’s taxable income in the fourth rate bracket shall be 33 percent to the extent such income does not exceed an amount equal to the excess of--CommentsClose CommentsPermalink





‘(I) the applicable amount, overCommentsClose CommentsPermalink





‘(II) the dollar amount at which such bracket begins, andCommentsClose CommentsPermalink





‘(ii) the 36 percent rate of tax under such subsections shall apply only to the taxpayer’s taxable income in such bracket in excess of the amount to which clause (i) applies.CommentsClose CommentsPermalink





‘(iii) FOURTH RATE BRACKET- For purposes of this paragraph, the term ‘fourth rate bracket’ means the bracket which would (determined without regard to this paragraph) be the 36-percent rate bracket.CommentsClose CommentsPermalink





‘(4) APPLICABLE AMOUNTS IN THE HIGHEST RATE BRACKET-CommentsClose CommentsPermalink





‘(A) IN GENERAL- In the case of a taxpayer whose applicable amount for the taxable year is in the highest rate bracket--CommentsClose CommentsPermalink





‘(i) the tables under subsections (a), (b), (c), and (d) shall be applied by substituting ‘33%’ for ‘36%’ each place it appears,CommentsClose CommentsPermalink





‘(ii) the rate of tax under subsections (a), (b), (c), and (d) on a taxpayer’s taxable income in the highest rate bracket shall be 35 percent to the extent such income does not exceed an amount equal to the excess of--CommentsClose CommentsPermalink





‘(I) the applicable amount, overCommentsClose CommentsPermalink





‘(II) the dollar amount at which such bracket begins, andCommentsClose CommentsPermalink





‘(iii) the 39.6 percent rate of tax under such subsections shall apply only to the taxpayer’s taxable income in such bracket in excess of the amount to which clause (i) applies.CommentsClose CommentsPermalink





‘(B) HIGHEST RATE BRACKET- For purposes of this paragraph, the term ‘highest rate bracket’ means the bracket which would (determined without regard to this paragraph) be the 39.6-percent rate bracket.CommentsClose CommentsPermalink





‘(5) APPLICABLE AMOUNT- For purposes of this subsection--CommentsClose CommentsPermalink





‘(A) IN GENERAL- The term ‘applicable amount’ means the excess of--CommentsClose CommentsPermalink





‘(i) the applicable threshold, overCommentsClose CommentsPermalink





‘(ii) the sum of the following amounts in effect for the taxable year:CommentsClose CommentsPermalink





‘(I) the basic standard deduction (within the meaning of section 63(c)(2)), andCommentsClose CommentsPermalink





‘(II) the exemption amount (within the meaning of section 151(d)(1)) (or, in the case of subsection (a), 2 such exemption amounts).CommentsClose CommentsPermalink





‘(B) APPLICABLE THRESHOLD- The term ‘applicable threshold’ means, in the case of any taxpayer for any taxable year, the sum of--CommentsClose CommentsPermalink





‘(i) the base amount, plusCommentsClose CommentsPermalink





‘(ii) the small business and family farm income of such taxpayer for such taxable year.CommentsClose CommentsPermalink





‘(C) BASE AMOUNT- The term ‘base amount’ means--CommentsClose CommentsPermalink





‘(i) $250,000 in the case of subsection (a),CommentsClose CommentsPermalink





‘(ii) $200,000 in the case of subsections (b) and (c), andCommentsClose CommentsPermalink





‘(iii) 1/2 the amount applicable under clause (i) (after adjustment, if any, under subparagraph (G)) in the case of subsection (d).CommentsClose CommentsPermalink





‘(D) SMALL BUSINESS AND FAMILY FARM INCOME-CommentsClose CommentsPermalink





‘(i) IN GENERAL- The term ‘small business and family farm income’ means, with respect to any taxpayer for any taxable year, the gross income of the taxpayer for such taxable year which is attributable to--CommentsClose CommentsPermalink





‘(I) any small trade or business of the taxpayer (other than the trade or business of being an employee), orCommentsClose CommentsPermalink





‘(II) any dividends, distributions, or interest received from any small business.CommentsClose CommentsPermalink





‘(ii) DEDUCTIONS TAKEN INTO ACCOUNT- The amount of gross income taken into account under clause (i) shall be reduced by the amount of any deductions properly allocable thereto.CommentsClose CommentsPermalink





‘(iii) SMALL BUSINESS- The term ‘small business’ means any corporation or partnership which employed an average of less than 500 employees on business days during the taxable year. A trade or business shall be treated as a small trade or business if such trade or business would be a small business if such trade or business was a corporation. For purposes of this clause, all persons treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as a single entity.CommentsClose CommentsPermalink





‘(E) INFLATION ADJUSTMENT- For purposes of this paragraph, with respect to taxable years beginning in calendar years after 2012, each of the dollar amounts under clauses (i) and (ii) of subparagraph (C) shall be adjusted in the same manner as under paragraph (1)(C), except that subsection (f)(3)(B) shall be applied by substituting ‘2011’ for ‘1992’.’.CommentsClose CommentsPermalink





(2) PHASEOUT OF PERSONAL EXEMPTIONS AND ITEMIZED DEDUCTIONS-CommentsClose CommentsPermalink





(A) OVERALL LIMITATION ON ITEMIZED DEDUCTIONS- Section 68 is amended--CommentsClose CommentsPermalink





(i) by striking ‘the applicable amount’ the first place it appears in subsection (a) and inserting ‘the applicable threshold in effect under section 1(i)(3)’,CommentsClose CommentsPermalink





(ii) by striking ‘the applicable amount’ in subsection (a)(1) and inserting ‘such applicable threshold’,CommentsClose CommentsPermalink





(iii) by striking subsection (b) and redesignating subsections (c), (d), and (e) as subsections (b), (c), and (d), respectively, andCommentsClose CommentsPermalink





(iv) by striking subsections (f) and (g).CommentsClose CommentsPermalink





(B) PHASEOUT OF DEDUCTIONS FOR PERSONAL EXEMPTIONS-CommentsClose CommentsPermalink





(i) IN GENERAL- Paragraph (3) of section 151(d) is amended--CommentsClose CommentsPermalink





(I) by striking ‘the threshold amount’ in subparagraphs (A) and (B) and inserting ‘the applicable threshold in effect under section 1(i)(3)’,CommentsClose CommentsPermalink





(II) by striking subparagraph (C) and redesignating subparagraph (D) as subparagraph (C), andCommentsClose CommentsPermalink





(III) by striking subparagraphs (E) and (F).CommentsClose CommentsPermalink





(ii) CONFORMING AMENDMENTS- Paragraph (4) of section 151(d) is amended--CommentsClose CommentsPermalink





(I) by striking subparagraph (B),CommentsClose CommentsPermalink





(II) by redesignating clauses (i) and (ii) of subparagraph (A) as subparagraphs (A) and (B), respectively, and by indenting such subparagraphs (as so redesignated) accordingly, andCommentsClose CommentsPermalink





(III) by striking all that precedes ‘in a calendar year after 1989,’ and inserting the following:CommentsClose CommentsPermalink





‘(4) INFLATION ADJUSTMENT- In the case of any taxable year beginning’.CommentsClose CommentsPermalink





(c) Effective Date- Except as otherwise provided, the amendments made by this section shall apply to taxable years beginning after December 31, 2012.CommentsClose CommentsPermalink

SEC. 3. PERMANENT EXTENSION OF 2003 TAX RELIEF FOR MIDDLE-CLASS FAMILIES, SMALL BUSINESSES, AND FAMILY FARMS.

(a) Permanent Extension-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 303 of the Jobs and Growth Tax Relief Reconciliation Act of 2003 is hereby repealed.CommentsClose CommentsPermalink





(2) EFFECTIVE DATE- The repeal made by this subsection shall take effect as if included in the enactment of the Jobs and Growth Tax Relief Reconciliation Act of 2003.CommentsClose CommentsPermalink





(b) 20-Percent Capital Gains Rate for Certain High-Income Individuals-CommentsClose CommentsPermalink





(1) IN GENERAL- Paragraph (1) of section 1(h) is amended by striking subparagraph (C), by redesignating subparagraphs (D) and (E) as subparagraphs (E) and (F) and by inserting after subparagraph (B) the following new subparagraphs:CommentsClose CommentsPermalink





‘(C) 15 percent of the lesser of--CommentsClose CommentsPermalink





‘(i) so much of the adjusted net capital gain (or, if less, taxable income) as exceeds the amount on which a tax is determined under subparagraph (B), orCommentsClose CommentsPermalink





‘(ii) the excess (if any) of--CommentsClose CommentsPermalink





‘(I) the amount of taxable income which would (without regard to this paragraph) be taxed at a rate below 36 percent (39.6 percent in the case of a taxpayer whose applicable amount (as defined in subsection (i)(3)) is above the dollar amount at which the highest rate bracket (as defined in such subsection) begins), overCommentsClose CommentsPermalink





‘(II) the sum of the amounts on which a tax is determined under subparagraphs (A) and (B),CommentsClose CommentsPermalink





‘(D) 20 percent of the adjusted net capital gain (or, if less, taxable income) in excess of the sum of the amounts on which tax is determined under subparagraphs (B) and (C),’.CommentsClose CommentsPermalink





(2) MINIMUM TAX- Paragraph (3) of section 55(b) is amended by striking subparagraph (C), by redesignating subparagraph (D) as subparagraph (E), and by inserting after subparagraph (B) the following new subparagraphs:CommentsClose CommentsPermalink





‘(C) 15 percent of the lesser of--CommentsClose CommentsPermalink





‘(i) so much of the adjusted net capital gain (or, if less, taxable excess) as exceeds the amount on which tax is determined under subparagraph (B), orCommentsClose CommentsPermalink





‘(ii) the excess described in section 1(h)(1)(C)(ii), plusCommentsClose CommentsPermalink





‘(D) 20 percent of the adjusted net capital gain (or, if less, taxable excess) in excess of the sum of the amounts on which tax is determined under subparagraphs (B) and (C), plus’.CommentsClose CommentsPermalink





(c) Conforming Amendments-CommentsClose CommentsPermalink





(1) The following provisions are each amended by striking ‘15 percent’ and inserting ‘20 percent’:CommentsClose CommentsPermalink





(A) Section 531.CommentsClose CommentsPermalink





(B) Section 541.CommentsClose CommentsPermalink





(C) Section 1445(e)(1).CommentsClose CommentsPermalink





(D) The second sentence of section 7518(g)(6)(A).CommentsClose CommentsPermalink





(E) Section 53511(f)(2) of title 46, United States Code.CommentsClose CommentsPermalink





(2) Sections 1(h)(1)(B) and 55(b)(3)(B) are each amended by striking ‘5 percent (0 percent in the case of taxable years beginning after 2007)’ and inserting ‘0 percent’.CommentsClose CommentsPermalink





(3) Section 1445(e)(6) is amended by striking ‘15 percent (20 percent in the case of taxable years beginning after December 31, 2010)’ and inserting ‘20 percent’.CommentsClose CommentsPermalink





(d) Effective Dates-CommentsClose CommentsPermalink





(1) IN GENERAL- Except as otherwise provided, the amendments made by subsections (b) and (c) shall apply to taxable years beginning after December 31, 2012.CommentsClose CommentsPermalink





(2) WITHHOLDING- The amendments made by paragraphs (1)(C) and (3) of subsection (c) shall apply to amounts paid on or after January 1, 2013.CommentsClose CommentsPermalink

SEC. 4. TEMPORARY EXTENSION OF 2009 TAX RELIEF.

(a) American Opportunity Tax Credit-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 25A(i) is amended by striking ‘or 2012’ and inserting ‘2012, or 2013’.CommentsClose CommentsPermalink





(2) TREATMENT OF POSSESSIONS- Section 1004(c)(1) of division B of the American Recovery and Reinvestment Tax Act of 2009 is amended by striking ‘and 2012’ each place it appears and inserting ‘2012, and 2013’.CommentsClose CommentsPermalink





(b) Child Tax Credit- Section 24(d)(4) is amended--CommentsClose CommentsPermalink





(1) by striking ‘AND 2012’ in the heading and inserting ‘2012, AND 2013’, andCommentsClose CommentsPermalink





(2) by striking ‘or 2012’ and inserting ‘2012, or 2013’.CommentsClose CommentsPermalink





(c) Earned Income Tax Credit- Section 32(b)(3) is amended--CommentsClose CommentsPermalink





(1) by striking ‘AND 2012’ in the heading and inserting ‘2012, AND 2013’, andCommentsClose CommentsPermalink





(2) by striking ‘or 2012’ and inserting ‘2012, or 2013’.CommentsClose CommentsPermalink





(d) Temporary Extension of Rule Disregarding Refunds in the Administration of Federal Programs and Federally Assisted Programs- Subsection (b) of section 6409 is amended by striking ‘December 31, 2012’ and inserting ‘December 31, 2013’.CommentsClose CommentsPermalink





(e) Effective Dates- The amendments made by this section shall apply to taxable years beginning after December 31, 2012.CommentsClose CommentsPermalink

SEC. 5. TEMPORARY EXTENSION OF ESTATE TAX RELIEF.

(a) In General- Section 901 of the Economic Growth and Tax Relief Reconciliation Act of 2001, as amended by this Act, is amended by striking ‘December 31, 2012’ and inserting ‘December 31, 2013’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall take effect as if included in the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001.CommentsClose CommentsPermalink

SEC. 6. TEMPORARY EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX EXEMPTION AMOUNT.

(a) In General- Paragraph (1) of section 55(d) is amended--CommentsClose CommentsPermalink





(1) by striking ‘$72,450’ and all that follows through ‘2011’ in subparagraph (A) and inserting ‘$78,750 in the case of taxable years beginning in 2012’, andCommentsClose CommentsPermalink





(2) by striking ‘$47,450’ and all that follows through ‘2011’ in subparagraph (B) and inserting ‘$50,600 in the case of taxable years beginning in 2012’.CommentsClose CommentsPermalink





(b) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2011.CommentsClose CommentsPermalink

SEC. 7. TEMPORARY EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR NONREFUNDABLE PERSONAL CREDITS.

(a) In General- Paragraph (2) of section 26(a) is amended--CommentsClose CommentsPermalink





(1) by striking ‘or 2011’ and inserting ‘2011, or 2012’, andCommentsClose CommentsPermalink





(2) by striking ‘2011’ in the heading thereof and inserting ‘2012’.CommentsClose CommentsPermalink





(b) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2011.CommentsClose CommentsPermalink